Cool for School China’s Growing Study Abroad Market

Not Just the Wealthy

“I like what I am doing and that’s why I haven’t switched professions,” Li said. “Although it is not a massively profitably business, there is meaning in helping Chinese students from normal families get a great education.”

For a long time in China, studying abroad was considered a privilege of the elite class. Since 1985, the Chinese government has been encouraging students to study abroad at their own expense. Student numbers were slow to pick up, probably due to the costs involved. But as China has become richer, the number of average families making the investment in overseas study for their children has shot up.

The appreciation of the RMB has been a significant factor in the rising popularity of studying abroad. As the value of the RMB has risen over the last decade, the cost of studying overseas has fallen dramatically. Other factors that have spurred more self-funded study abroad applications include rising incomes and the cultural importance Chinese families attach to education.

China’s Overseas Study Development Report (2012) shows that from 2000 to 2011 the total number of Chinese students who had studied overseas reached 1.91 million, among whom 91.3 percent, or 1.75 million, studied at their own expense. The proportion of self-funded students from working-class families rose from two percent to 34 percent.

According to Li Ping, the increasing number of students from working-class families is due to foreign universities’ providing scholarships and high quality programs designed for those with limited means. There are greater “budget” study abroad options than ever before. Examples include community colleges in the U.S. where annual expenses amount to no more than RMB 150,000.

The Chinese government has also launched a scholarship program for self-funded students to reduce their economic burden. Many banks and foreign embassies in China also cooperate to provide students with loans and other funding opportunities.

The government is keen to see greater numbers of Chinese students at top international institutions. It knows the upcoming generation of Chinese business and scientific leaders will need an internationalist outlook to ensure the country is competitive as the 21st century progresses.

In a globalized world, China can’t develop without talented individuals that have an internationalist world outlook. It needs more professionals who have received international education that are able to understand and adapt to international cultural differences and associate freely with international colleagues. Among all requirements of China’s younger generations, study abroad is a strong advantage.

Li maintains that the aim of studying abroad is never just to gain a foreign diploma, but rather to lay down concrete foundations for future career development. “Successfully gaining admission to a foreign university is just the beginning; the most important thing once you’re actually in the country is to gain tangible skills and learn from the experience of being abroad,” Li said.

Aoji Education Group has set up many overseas branches to help students with any problems they encounter once they’re abroad. If Aoji places the student, the service is totally free. “Sometimes, it’s the small issues that can lead to big problems later down the track,” Li said on the importance of the overseas help service.

Globalized Education, Local Challenges

Industry insiders are confident the popularity of overseas study will continue to grow in China. Estimates project that the number of annual visits should reach 1.1 million by 2017.

The industry has not grown without controversy, however. The average age of Chinese students studying overseas has fallen. Many fret that a student sent abroad too young will fail to develop a sufficient understanding of his or her own culture. The prevalence of fake diplomas has also become an issue, as has the increasing difficulty returned students face in finding jobs.

According to statistics from the U.S. Department of Homeland Security, only 65 Chinese students holding private passports were enrolled in American high schools during the 2005-2006 academic year. By 2010-2011, the number reached 6,725, a 100-fold increase.

Though Chinese educators worry about the falling average age of overseas Chinese students, Li Ping maintains that concerns are overblown. “We should never judge if a child is ready for overseas study based on his or her age. If the child has a solid foundation in Chinese and a foreign language and is able to adapt to new environments, that’s plenty enough. We shouldn’t be the ones to admonish parents for trying to better their son or daughter’s education.”

In order to help younger – usually mid-teen – students better understand the language, culture and course programs of the country to which they are heading, many schools in China have launched “international classes,” which teach Advanced Placement (AP) programs or A-level subjects. Li says that in his experience they are generally effective in helping young students prepare for their overseas study.

Another problem associated with the rising popularity of studying abroad is the emergence of companies that fake application materials for prospective students.

Demand for fake application materials comes from Chinese students’ – and usually, their parents’ – fixation on attending only top-flight universities. Generally “fakes” are spotted. But even if they are not, students who gain admission to the most competitive institutions under false premises are wasting their time. They are probably not cut out for the course, and will struggle to pass. “They’re wasting their own time and their parents’ money,” Li said.

The market is coming of age slowly. There is a growing understanding that it’s more important to choose the right university for the potential applicant, rather than the most prestigious university to which the student can gain acceptance.

“The study abroad service industry is unlike other industries. We’re selling a product, but, most of the time, the ‘customer,’ i.e. the student, will only buy the service once. It’s the industry’s responsibility to ensure that a student’s study abroad experience – which may be his or her only such experience in their life – is a good one,” Li said.

The world financial crisis of 2008 had far greater impact on developed countries than on China. But one peculiar effect of the economic fallout was that large numbers of Chinese students abroad chose to head straight back to China after finishing their programs, rather than stay on in their host countries to join the local workforce. As a result, fresh graduates with overseas experience have found it increasingly difficult to secure work in China. Many have started to question the value of study abroad.

Li, for his part, is still convinced of the value of study abroad. “There are still so many experiences to gain from going abroad. You learn about a foreign culture and a different set of values. You become independent. It’s never just about getting a diploma.”